AccorHotels: one more step towards scission

The constitution of a distinct legal entity (HotelInvest) within the hospitality group has been confirmed by the AccorHotels board of directors. This subsidiary marks one step forward towards the 'Booster' project, said to be achieved anytime soon.

The Board of Directors has gone one step further towards the realization of the 'Booster' project that the hospitality group carries: with HotelInvest being definitely turned into a subsidiary under AccorInvest, which will hold most of the group's real estate assets, it will become a distinct legal entity. Which is just one step away from opening it up to foreign shareholders in the near future: the group's CEO Sébastien Bazin has announced his will to do so during summer 2017.

The goal is to "provide AccorHotels with reinforced financial means so as to speed up its growth". In other words, to raise funds in order to finance its development, and accelerate its strategic transformation. The new entity will be responsible for about 960 hotels located in 26 countries, with some 40,000 employees overall - an average of 42 employees per property.

This agreement should support financial analysts' and investors' interests, as the group already displayed record profit for the year 2016 and has plus wind in its sails over the early months of 2017. But as the bar was raised to €6.6bn before negotiations started, the issue at stake is more about whether or not the expectations generated by the project will be met.